HE'S one of Sydney's most famous car dealers, with a sprawling dealership that is among the most recognised on Parramatta Road.

End of the road for Damelian empire

HE'S one of Sydney's most famous car dealers, with a sprawling dealership that is among the most recognised on Parramatta Road.

But Rick Damelian's car empire has hit a road block.

The Damelian Group was placed in receivership yesterday with debts of about $80 million.

The receivers, Ferrier Hodgson, moved quickly to calm customers by insisting no new car buyers would be left out of pocket.

A spokesman for Ferrier Hodgson said all customers who have paid deposits would receive their cars, but no new sales would be offered. Servicing at the dealership has also been suspended until further notice.

Damelian began his dealership in 1978 and has become one of Sydney's most well-known business identities as his operation expanded. His huge Parramatta Road operation housed nine separate brands and showrooms, with a focus on prestige and European vehicles. Damelian Group has franchises for Honda, Alfa Romeo, Fiat, Citroen, Renault, Suzuki, Skoda, prestige cars and used vehicles.

Rick Damelion

It is understood the dealership had been working with its creditor for some time to try to find a solution, but negotiations broke down yesterday.

The spokesman for Ferrier Hodgson said a viability assessment would be carried out this week to determine what would happen to the business. Although the spokesman said it could be kept afloat under new ownership, one automotive industry insider was less optimistic.

"I don't think it's resurrectable," the insider told the Herald.

Although there has been no official confirmation, the creditor is believed to be NAB. It pays for the vehicles on the showroom floor before they are sold to customers, leaving them exposed instead of the car manufacturers.

Of the nine brands only the Skoda dealership is not affected by the receivership. It's believed that the Skoda showroom is covered by a different finance company, but one well-placed source said it was only a matter of time before "the house of cards comes down".

A spokesman for Ateco Automotive, which imports the Alfa Romeo, Fiat and Citroen brands, said it was working with its customers to find new service centres, adding the loss of Damelian created a hole in the market that would have to be filled by a new dealership.